Gold Price Analysis: XAU/USD bears looking for a discount

Bulls have rallied into a supply zone on the daily chart.
Gold is on the verge of a significant correction at this juncture.

Ross J Burland FXStreet

The price of gold has been on full throttle to the upside but has run into a wall of resistance and the focus is now on a sizeable downside correction.

Daily chart

The daily support is a compelling target that can be monitored from a vantage point on the lower time frames, such as the hourly.

Hourly chart

The price is already in decline and could be expected to meet at least a 38.2% Fibo or a 50% mean reversion that has a confluence with the prior highs looking left.

At that juncture, a continuation to the upside can be expected.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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